Sprinkle lamb cubes with sugar. Heat oil in Dutch oven over medium heat until hot. Add lamb; cook and stir until browned.
Stir in flour, parsley, salt, thyme, pepper and garlic. Cook 1 minute, stirring constantly.
Gradually stir in water, wine and Worcestershire sauce. Add bay leaf. Bring to a boil. Reduce heat to low; cover and simmer 1 1/2 hours or until lamb is tender, stirring occasionally.
Stir in carrots, celery, onions and potatoes. Cover; simmer an additional 30 to 45 minutes or until vegetables are tender. Remove bay leaf.